See the latest Australian dollar analysis here:
A sea of red out there on Asian stock markets in response to the largish falls on Wall Street overnight from a crazy short squeeze as the professionals (sic) continue to clutch their pearls as Redditors and Robinhooders go after their next target. USD is definitely King Dollar at the moment, with gold and silver pushed lower, while Yen and Aussie are suffering even more. Bitcoin still can’t get out of its Friday night breakdown phase, deflating to the $31K level before a very small recovery during the afternoon session, but still on a downtrend:
The Shanghai Composite has fallen over 1% alongside other Asian stocks, currently at 3528 going into the close, while in Hong Kong the Hang Seng Index has pushed sharply lower, down nearly 2%, currently at 28775 points. Japanese markets are also struggling with the risk off activities, with the Nikkei 225 finishing 1.2% lower at 28270 points while the USDJPY pair continued its surge from last night to make a new two week high and bursting through the 104 handle:
The ASX200 was the worst off, falling 1.9% to close at 6649 points, not helped at all by the Australian dollar which slumped below the 77 handle and kept going into a very oversold position at 76.30 going into the European session, making a new low for the year:
Eurostoxx and S&P futures are trying to stabilise here going into the European open, with the four hourly chart of the S&P500 showing that break of the post-Biden election trendline, after briefly touching the 3700 point level overnight. Are we going to see wider selloffs tonight?:
The economic calendar continues with German inflation and the 4Q GDP print and weekly initial jobless claims for the US.